Extract from Rhys Dipshan’s article “Legal Departments Want Their Firms Using Gen AI—and Expect Cost Savings”
A significant number of legal departments want their outside counsel to use generative artificial intelligence, and expect the technology to lead to better value for law firms’ services, according to the 16th annual Law Department Operation Survey from the Blickstein Group and Deloitte.
The survey of 77 in-house legal and legal ops professionals, each from a separate company, found that many legal departments see generative AI as a benefit to their bottom line and the legal services they procure. A majority, 54.5%, expect that for work augmented by generative AI, firms will bill in different ways, including offering more alternative fee arrangements (AFAs). A larger majority, around 68%, also believe that the value of law firms’ legal services will increase if they leverage generative AI.
In addition, 63% of respondents said they encourage their law firms to leverage generative AI, while 28% discourage its use.
Brad Blickstein, founder and principal of Blickstein Group and NewLaw Practice co-head at Baretz+Brunelle, told Legaltech News that this doesn’t mean legal departments are giving their outside counsel free rein with generative AI. “I wouldn’t take that response as meaning that law departments are giving their firms license to use generative AI however they like and not without notifying them, and without making sure that they are using the tool properly and in compliance with how the law department wants them to,” he said.
